Renters Insurance: I'm buying it for the first time - are you experienced?

Discussion in 'Off Topic Chat' started by Wilynn, Dec 16, 2008.

  1. Wilynn

    Wilynn TPF Noob!

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    I take stock of what I have around me and I notice that I've accumulated my fair share of electronic goods, along with a few other things like new furniture, etc.

    So I'm at the point where it would behoove me to buy renters insurance. I've never purchased RI before, ever.

    I used to think that the insurance company would never pay out the full value on a lost item. I thought they would pro-rate it and factor in the age of the item, a.k.a. depreciation. Recently an insurance agent told me that that's not true, that they don't pro-rate personal property, that they don't factor in depreciation.

    Wow, what a surprise that was! He said they pay out whatever you paid for the item.

    Aside from that little detail, what should I look for when purchasing renters insurance, and what's your experience with it?

    I'm a complete n00b with RI, so don't feel that whatever info you share is too basic. (I won't feel insulted.) And besides, there are other people out there who might benefit from your words and wisdom, so don't hesitate to post your experience with RI, no matter how trivial you think it is.

    P.S. I have most of the receipts for just about everything.
     
  2. OregonAmy

    OregonAmy TPF Noob!

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    Congratulations on getting renters' insurance. It's definitely worth it. I had it for years (now I own) and I think the most expensive monthly premium I had was around $11.80 - and I have some decent stuff (electronics).

    What you're talking about is Actual Cost insurance, which reimburses you for what you paid for the item. Replacement Cost will pay you what you will need to spend to replace the item (same or similar). If you are someone who is at the front of the technology adoption curve, you might want to get actual cost, since you're likely paying a lot more $ for your goods than those who are in the middle/hump of the curve.

    Here's a great article on it.
    http://personalinsure.about.com/cs/renters/a/aa102102a.htm

    I've used State Farm for over a decade and have always been happy with them. It may be more practical to go with your current insurance company if it's a product they offer (to get the multi-product discount).
     
    Last edited: Dec 16, 2008
  3. Wilynn

    Wilynn TPF Noob!

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    That's a good article.

    I remodeled my apartment. It went from being unhospitable - a major eyesore - to a place where I now look forward to hosting people of all ages and gender. Talk about a transformation, a much needed one! Anyway, this part of the article was revealing:

    Not only will renter's insurance protect your personal items, it will also give you help with temporary housing and liability protection such as medical expenses for people on your property or a lawyer if you are sued by someone unintentionally injured by you.

    Aside from that, does anyone know how much it costs to rent a safe deposit box each month? I might want to keep my receipts in an SDB, among other things.
     
  4. OregonAmy

    OregonAmy TPF Noob!

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    It depends on the size you get, as well as where you get it. Why do you keep your receipts long term?

    The cost of storing a bunch of receipts in a safe deposit box would outweigh any benefit of keeping them, that I can think of anyway.
     
  5. Wilynn

    Wilynn TPF Noob!

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    Currently I keep all of my receipts in a 'filing cabinet' made out of milk crates that anyone can buy at Staples or Office Depot.

    Still though I'm a little interested in a safe deposit box for storing any number of things.
     
  6. Big Mike

    Big Mike I am Big, I am Mike Staff Member Supporting Member

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    With home/renter insurance, it's usually a trade off between low payments and a low deductible. For example, you can get great rates if your deductible is $1000 or $2000...but then you can't claim anything that is less than that.

    One option is to have some of you gear put on a policy rider. I have had my photo gear on a rider to my home owner's policy. The deductible for my photo gear only was something like $25 or $50...and much higher for the rest of the policy. It did cost extra though.
     

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